COPS JULY 2013 UPDATE TO TAC 07/02/2013 Harika Basaran, Chair Jim Lee, Vice Chair

2 COPS VOTING ITEMS-Background Approved transition to Phase 2 of the NPRR 509 implementation No major issues were observed at 8 days that started with 4/1/13 OD COPS members voted to approve the transition to Phase 2 Only opposed votes were from the Cooperative segment (concerns related to Non-IDR meters) Initial settlement statement will be posted after 7 days Final settlement statement will be posted after 57 days Effective date is August 1, 2013 operating day Weekly Webex calls led by CSWG & ERCOT are canceled until August 5, Monday CSWG /COPS will continue to monitor and evaluate the impact of reducing to 7 days and report back to TAC regularly Approved COPMGRR 035 Synchronization of NPRR347 and NPRR509. This RR was tabled until COPS approved the transition to Phase 2 of NPRR509 above

3 COPS VOTING ITEMS for TAC July 2013 Meeting 1.COPS recommends TAC to approve transition to Phase 2 of the NPRR 509 implementation and to reduce the initial RTM Settlement timeline to 7 days and to reduce the final RTM settlement timeline to 57 days with the effective date of 8/1/2013 Operating day 2.COPS recommends TAC to approve COPMGRR 035 Synchronization of NPRR347 and NPRR509

4 COPS MAJOR DISCUSSION ITEMS-(June Meeting) CRR June monthly auction invoice issue  On May 17, the June Monthly CRR Auction Invoices for four NOIE CRR Account Holders were posted with duplicate CRR IDs  The four invoices were immediately removed from the MIS  Since the number of MPs impacted were less than 10, no Market Notice was send out, instead each MP’s AR was contacted directly  Settlements has implemented an automated validation to check for duplicate CRRIDs on Auction Invoices NERC vs ERCOT holidays  Request came from an MP to change the use of NERC Holidays instead of ERCOT Holidays for ERS procurement  Based on comparing the ERS Fleet load for the ERCOT holidays versus the NERC holidays the ERCOT holidays more closely align with non-business hours.  Adopting the NERC Holidays would place the ERS participants at risk of failing both availability and deployment metrics for those days  ERCOT will continue to use ERCOT holidays  However ERCOT Staff agreed to work with MP to provide a way of including the future holidays either in extracts or as a code so that MPs can use it in their shadow settlement system. (NPRR may be required) (

5 WORKING GROUPS CSWG: (June 17 meeting) Settlement Timeline impact of available load data to calculate Adjusted Meter Load (AML) –Each MP is encouraged to run scenarios with the available meter data they have after the operating date –Compare it with the actual AML data received after 6 days –This will help the stakeholders evaluate the impact of reducing the settlement and data aggregation timeline further –How much of AML is actual, how much is based on estimation? ERCOT Staff support of the COPS working groups –Ted Hailu from ERCOT attended the meeting –ERCOT Client Services is in the process of transitioning meeting support to be more in line with the level expressed in the Working Group and Task Force Leadership Guide< _Guide_ dochttp:// _Guide_ doc –CSWG Leadership will take over certain administrative duties currently conducted by ERCOT Staff such as running Webex, taking notes, reserving rooms etc. –PWG already functions without full support of ERCOT Staff –CSWG will transition to the new process over the summer

6 WORKING GROUPS CSWG: (June 17 meeting) contd. CRR Shortfall in May –Reviewed DAM CRR shortfalls and uplift of excess congestion rent to load since inception of the market –Almost $12 million of shortfall in DAM for the month of May 2013 –Most of it is due to outages (discussed in CMWG) –Some of it due to error found in SFT related to de-ration of certain CRRs –Some CRRs not de-rated as they should have been –Days subject to resettlement are February 14 – June 14 –Defect corrected as of June 14, 2013 –No impact on prices –DAM will resettled for the days per protocol if error is > 2% of the market total for that day –Expect a Market Notice this week Settlement of NPRR 477 Disputes for Exception for BLT at Presidio Agreed to submit a draft NPRR to create a new monthly uplifted BLT charge type to account this item correctly going forward instead of using RTM Misc Amt charge type Reviewed Managing AMS Data documents regarding TDSP data practices –Will be posted also under CSWG key documents Limited data availability in extracts for ERS procured by ERCOT (open item) Retail extracts timeline (open item) NEXT COPS MEETING IS ON JUNE 11 TUESDAY, 2013

7 WORKING GROUPS Profiling WG: –PWG met on June 4, Tuesday to review the annual UFE report –ERCOT Staff’s Full Report posted on the PWG Webpage: UFE_Analysis_Report.ppt UFE_Analysis_Report.ppt –Next tasks to be completed by November of 2013 are: Profile ID Annual Validation Residential Profile ID Annual Validation Business MISUG: –Eric Goff (CITI) volunteered to chair –Julie Thomas (Luminant) volunteered to be Vice Chair –Assignment from TAC: Review manual ERCOT reports to evaluate whether still required or can be automated –Assignment from PRS: NOGR084 Daily Grid Operations Summary Report NEXT COPS MEETING IS ON JUNE 11 TUESDAY, 2013

8 OTHER CANCELLED JULY COPS MEETING NEXT COPS MEETING IS ON AUGUST 13 TUESDAY, 2013

9 Questions?